Quick in Talks With Franchisees in Switzerland

Europe's pioneering fast-food chain has confirmed its expansion into three new international markets. In one of these target countries, Switzerland, Quick has taken the first legal steps in what is currently a pre-contractual phase with prospective entrepreneurs.

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According to a board report, Quick's international expansion is progressing slowly but steadily. "Regarding Switzerland, a head of terms has already been signed with two candidate franchisees," the report states. In the Swiss market, a non-binding agreement in principle – outlining the broad contours of a commercial and financial plan – was reached in mid-May with independent local operators.

Negotiations have continued since then to structure Quick's entry into what would become its fifth country, following Belgium, Luxembourg, France, and Morocco. "The company is being supported by local legal advisers," the directors of Quick Restaurants noted. The Belgian entity is in fact a subsidiary of the French holding company New Giant International, which serves as the governance vehicle for investment fund H.I.G. Capital, owner of the Quick brand in France.

As Gondola Foodservice reported earlier this summer, the well-known burger chain has established three new Belgian subsidiaries as part of its territorial expansion, each dedicated to a specific new market: the Netherlands, Germany, and Switzerland. Notably, neither the Burger Brands group nor its parent company QSRP – which hold the perpetual license for Belgium – are involved in this initiative.

Rather, it is the Quick entity based in Aubervilliers, France – acquired and restructured by U.S. private equity fund H.I.G. in 2021 – that is driving the expansion. At the time of the acquisition, the brand operated 107 restaurants in France, a network set to double soon and which management aims to triple by 2028.

As an investment fund, H.I.G. makes no secret of its ambition to maximize Quick's value ahead of an eventual resale. Demonstrating that the Quick model can be successfully exported beyond its historical markets – to Switzerland and elsewhere – could significantly boost the company's valuation.

Meanwhile, relying on franchising through local partners allows for faster regional rollout without tying up substantial capital. Swiss franchisees will bear the bulk of the real estate and operational risk in an economy known for its high rents and labor costs.

By the same token, customer-acquisition costs are expected to be lower than for an emerging brand. Quick already enjoys strong brand recognition in French-speaking Switzerland, owing to its geographic, cultural, and media proximity to France. Expansion is therefore likely to begin there before German-speaking Switzerland is considered.

Naturally, a signed head of terms does not guarantee the imminent opening of restaurants. Should local franchisees struggle to secure strategic locations, or should the numbers fail to add up against Switzerland's high cost of living, the project could face delays – or be shelved altogether.